Project 1 --Data and instructions (Group A) Assume that you have set up an Emirati corporation that does business in many countries, including in the USA. Your company is set up as a large US C-corporation and your company is required to submit Form 1120 to report corporate income and Schedule C to report dividend income from other companies that your corporation owns. Your company is in the manufacturing. The cost of goods sold is calculated by adding the beginning of period inventory to the inventory purchases and subtracting the end of period inventory. Fill in Form 1125-A to calculate cost of goods sold. Any other items in Form 1125-A can be left blank For dividends, your company only has one source of dividend income from a domestic corporation in which your company has a 6% ownership share. You can calculate the amount of dividend received deduction on Schedule C. You must fill out both Schedule C and Form 1125-A, before completing Form 1120. For form 1120 and all other forms, if nothing is listed, assume the number is zero. Hence, you do not have to fill out Schedules K, L, M-1, M-2 or any other supporting schedules, forms, and documents. For the name of your corporation, list your name and the names of the classmates in your group, if you are filing one return for the group. You have the option of one or two people per group. The fillable tax forms are on Blackboard. Specific numbers for your group are on the next page. All numbers are in US dollars. Numbers are not listed in any specific order except they are identified as either income or costs. Fill out Schedule Form 1125-A and Form 1120 (pages 1.2. and 3) Determine either the amount of refund you receive or what you owe the US government on April 15, 2019. For the name of your corporation, list your name and the names of the classmates in your group, if you are filing one return for the group. You have the option of one or two people per group. The fillable tax forms are on Blackboard. Specific numbers for your group are on the next page. All numbers are in US dollars. Numbers are not listed in any specific order except they are identified as either income or costs. Fill out Schedule C.Form 1125-A and Form 1120 (pages 1, 2, and 3). Determine either the amount of refund you receive or what you owe the US government on April 15, 2019. 2018 data for your corporation (Data set A) Date incorporated January 1, 2007 Employer identification number 2007-57445 Beginning of period inventory $3,000,000 Purchases of inventory S4,500,000 End of period inventory $2.000.000 Gross sales S12.500.000 Returns and allowances $200,000 Other Income Royalties Dividends received S130,000 $140,000 Costs: Repairs $150,000 Advertising $500,000 Bad debts $35.000 Employee benefits $800,000 Salary and wages to company employees $2,600,000 Compensation of corporate officers S850,000 Interest paid on bonds S64,365 Charitable contributions $44.778 Rent paid S265,800 Estimated total tax paid in 4 installments of S100,000 to US government during 2018, so taxes paid = 5400,000 OMB No 1545-0123 (Rev. November 2018) Department of the Treasury Internal Revenue Service Name Attach to Form 1120, 1120-C, 1120-F, 11205, or 1065. Go to www.irs.gov/Form 1125A for the latest information. Employer identification number AW 4 5 1 Inventory at beginning of year 1 2 Purchases 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 5 Other costs (attach schedule) 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1. line 2 or the appropriate line of your tax return. See instructions 8 9a Check all methods used for valuing closing inventory: Cost m Lower of cost or market on Other (Specify method used and attach explanation.) Check if there was a writedown of subnormal goods Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d if the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO 9d e property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions 1 Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes." attach explanation AA OD Yes No Yes No Project 1 --Data and instructions (Group A) Assume that you have set up an Emirati corporation that does business in many countries, including in the USA. Your company is set up as a large US C-corporation and your company is required to submit Form 1120 to report corporate income and Schedule C to report dividend income from other companies that your corporation owns. Your company is in the manufacturing. The cost of goods sold is calculated by adding the beginning of period inventory to the inventory purchases and subtracting the end of period inventory. Fill in Form 1125-A to calculate cost of goods sold. Any other items in Form 1125-A can be left blank For dividends, your company only has one source of dividend income from a domestic corporation in which your company has a 6% ownership share. You can calculate the amount of dividend received deduction on Schedule C. You must fill out both Schedule C and Form 1125-A, before completing Form 1120. For form 1120 and all other forms, if nothing is listed, assume the number is zero. Hence, you do not have to fill out Schedules K, L, M-1, M-2 or any other supporting schedules, forms, and documents. For the name of your corporation, list your name and the names of the classmates in your group, if you are filing one return for the group. You have the option of one or two people per group. The fillable tax forms are on Blackboard. Specific numbers for your group are on the next page. All numbers are in US dollars. Numbers are not listed in any specific order except they are identified as either income or costs. Fill out Schedule Form 1125-A and Form 1120 (pages 1.2. and 3) Determine either the amount of refund you receive or what you owe the US government on April 15, 2019. For the name of your corporation, list your name and the names of the classmates in your group, if you are filing one return for the group. You have the option of one or two people per group. The fillable tax forms are on Blackboard. Specific numbers for your group are on the next page. All numbers are in US dollars. Numbers are not listed in any specific order except they are identified as either income or costs. Fill out Schedule C.Form 1125-A and Form 1120 (pages 1, 2, and 3). Determine either the amount of refund you receive or what you owe the US government on April 15, 2019. 2018 data for your corporation (Data set A) Date incorporated January 1, 2007 Employer identification number 2007-57445 Beginning of period inventory $3,000,000 Purchases of inventory S4,500,000 End of period inventory $2.000.000 Gross sales S12.500.000 Returns and allowances $200,000 Other Income Royalties Dividends received S130,000 $140,000 Costs: Repairs $150,000 Advertising $500,000 Bad debts $35.000 Employee benefits $800,000 Salary and wages to company employees $2,600,000 Compensation of corporate officers S850,000 Interest paid on bonds S64,365 Charitable contributions $44.778 Rent paid S265,800 Estimated total tax paid in 4 installments of S100,000 to US government during 2018, so taxes paid = 5400,000 OMB No 1545-0123 (Rev. November 2018) Department of the Treasury Internal Revenue Service Name Attach to Form 1120, 1120-C, 1120-F, 11205, or 1065. Go to www.irs.gov/Form 1125A for the latest information. Employer identification number AW 4 5 1 Inventory at beginning of year 1 2 Purchases 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 5 Other costs (attach schedule) 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1. line 2 or the appropriate line of your tax return. See instructions 8 9a Check all methods used for valuing closing inventory: Cost m Lower of cost or market on Other (Specify method used and attach explanation.) Check if there was a writedown of subnormal goods Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d if the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO 9d e property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions 1 Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes." attach explanation AA OD Yes No Yes No